Tax Misery Rankings

The Forbes Tax Misery Index raises lots of interesting thoughts about tax competitiveness for both individuals and businesses. The 2004 index finds that tax misery is the highest in these countries worldwide:

1. France
2. Belguim
3. Sweden
4. China
5. Italy
6. Austria
7. Norway
8. Greece
9. Spain
10. Argentina

The U.S. is actually way down on the list. NY state is 21st on the list.

Although "Old Europe" continues to impose many of the heaviest loads on top producers, the Forbes Global Tax Misery & Reform Index shows many of those same nations to be making some of the biggest strides toward tax reduction.

More here.

The Growing Role of GPS in the Economy

For more and more industries, Global Positioning System (GPS) satellites provide something that until recently wasn't possible -- the precise location of a shipment, a truck, a customer, an emergency. This is incredibly powerful information. It enables everyone from farmers and archaeologists to global shippers and ambulance operators to work more efficiently and make more informed decisions. As FC writer Charles Fishman put it, the sky's the limit.

Today's Wall Street Journal explores the flipside of this transformational technology. Police officers who were unknowingly tracked using GPS and caught napping. Snow-plow drivers who protested having to carry cell phones equipped with GPS. Teamsters who feel their privacy is being violated by a tracking device in their tractor trailer.

How much GPS monitoring are you comfortable with? Would you agree to let your employer track your movements throughout the day using a GPS-enabled laptop, phone or car? If your company could operate more efficiently and save a bundle because of it -- and if that, in turn, helped your own bottom line -- would that change your mind?

And where is GPS in our business, economic development? Think about it.

More here.

Inflation Back, But Slowly

The U.S. enjoyed an unusual period of remarkably low inflation in 2003, but it's looking more than ever as though that good luck has expired. Following an unexpected 0.5% surge in March in two key inflation measures -- the producer price index (PPI) and the consumer price index (CPI) -- Wall Street had been hoping both numbers would moderate in April. Just the opposite happened with the PPI, a gauge of inflation at the wholesale level, which posted a hefty 0.7% rise in the overall, or headline, figure in April, the government said on May 13. While the numbers leave little doubt that a period of higher prices has begun, the Fed can likely stay its hand until after the election, and that is what will likely happen.

Here for more.

Nonprofit Outcome Management

EDO's are more concerned about performance metrics and outcome management. This recent report by the Urban Institute might be a good source of ideas for ED managers and their boards on this subject.

A nonprofit should have certain characteristics to successfully develop and implement an outcome management process. They include the following:

--Leadership support. There must be visible support from top management in the organization.

--Commitment of time and staff resources. Initial development and introduction of the process often requires the time and effort of many staff members. Once the process is in place, the effort required typically decreases, as outcome management becomes part of basic program management.

--Program stability. Programs that are undergoing major change in mission or personnel are not good candidates for introducing performance measurement. A stable organizational environment is needed.

--Computer capability. Even if the organization is very small, the capacity to use computers to record data and prepare reports is very desirable. What is needed is hardware and software (even if rudimentary) as well as staff with the necessary expertise.

Here for more.

Maybe Economic Development Could Learn From This

Across the country, new institutions with the potential to contribute to social and economic change have begun to multiply in recent years. Many of these institutions, such as nonprofits generating significant fee-based revenue, community development corporations, and employee-owned firms, are hybrid organizations that blend governmental, nonprofit, and business values and strategies.

To better understand these emerging “hybrids,” the Nonprofit Sector Research Fund of the Aspen Institute has funded the Democracy Collaborative at the University of Maryland to undertake a new research project, “New and Emerging Organizational Forms for Advancing Social Purposes.” The study will map the broad range of emerging organizations in the United States and highlight how they address social problems by cultivating new sources of funding and promoting community-based activities that anchor jobs and foster local democratic practices.

Go here.

Cities and States Must Work Closer

Brookings has a new study report out that says cities should work closer with states in solving their problems.

Cities are creations of their states. Their boundaries, their powers, and their responsibilities are all substantially prescribed by state law. With the advent of the new federalism—beginning in the 1970s and resurgent today—the devolution of power from Washington to state capitals has increased the importance of state decision making for cities.

Yet, this shift occurred precisely as cities were losing political clout in state legislatures due to population decline within city limits and rampant growth in suburban jurisdictions.

This paper argues that in response to shifting population distributions within states, cities need to build new coalitions to effectively achieve their legislative goals within state legislatures. Case studies—New York City, Chicago, Detroit, and the three largest cities in Ohio (Cincinnati, Cleveland, and Columbus)—are used to more closely examine coalition-building methods.

Overall, the authors find:

--Cities' dependence on state government has increased as the federal government has ceded more power to the states. As cities' populations have declined, they have become weaker in state legislatures that have grown more powerful due to federal policy. In the peak year of 1978, about 15 percent of city revenues came from the federal government. By 1999 that had decreased to 3 percent. Concurrently, the federal government has shifted a number of programs to the states, which control the rules and revenue mechanisms cities operate under.

--Traditional political coalitions cities have used to achieve their state legislative goals are no longer as effective. Partisan (usually Democratic) coalitions are less reliable as focus has shifted to suburban swing districts. Moreover, as their power has decreased, cities' agendas have become more reactive, aiming to preserve the status quo in funding, infrastructure projects, and autonomy.

--Older, inner-ring suburbs are a logical new partner for cities in state legislatures. Increasingly, these suburbs, and some outer ones, have common interests with central cities as they address immigration, fiscal stress, and infrastructure woes. Such alliances would also better address metropolitan-wide issues on a metropolitan basis.

--There remain many obstacles to forging such coalitions, however, including longtime distrust among big cities and their neighbors, racial disparities, and in some cases, growing investment in central cities while surrounding suburbs languish. Nonetheless, for cities to effectively influence their state governments more creative approaches to coalition building must be found.

Here for more.

Sourcing Innovation Anywhere and Everywhere

Everybody is hot to trot about building the latest and greatest innovation-based economy, and we keep telling ourselves that our REAL competitive niche is here.

Read this article and tell me what you think. I think the author is right that innovation will be sourced from anywhere and everywhere in the world.

This says to me: 1) we should build innovation-led economies that are globally connected; and 2) we should stop pretending that we can be THE leader in anything. Leadership is not sustainable in anything. It's all about intermittent winners and losers. Count on it!

New Business Leader Database

Here is a useful source of insight for economic development. Harvard Business School has created a new database of the 20th Century's top business leaders. Actually, I am more interested in their best guesses on who the top ones will be for the 21st Century. Now, that would be the list to beat all lists!

Here to learn more.

What Do Higher Oil Prices Mean?

Here is what they could mean. If average oil prices for the year come in 10% higher than it forecast, it reckons GDP growth in the Group of Seven (G7) rich nations will be reduced by 0.3%, or $70 billion.

Here to read more.

Internet is Back in Full Swing, Well Maybe

Some say a smarter generation of Internet companies is on the way. You might find a recent Business Week article to be of interest in this regard. It's worth a look if your area has plans to develop new Internet startups in the future. Click here.

The NanoBusiness Alliance

The NanoBusiness Alliance is an industry group focused on increasing awareness about nanotechnology and its business potential. Its mission is to create a collective voice for the emerging small tech industry and develop a range of initiatives to support and strengthen the nanotechnology business community. These initiatives include: Research and Education; Public Policy; Public Relations; International Cooperation Activities, Trade Missions, and Events; Industry Support and Development Initiatives; Regional Hub Initiative; and others.

The Alliance was founded by F. Mark Modzelewski, Nathan Tinker and Josh Wolfe of Lux Capital in October 2001. The Advisory Board of the Alliance is headed by the leaders of the nanotechnology community and is headed by former House Speaker Newt Gingrich, Herb Goronkin of Motorola fame and leading venture capitalists Steve Jurvetson of Draper Fisher Jurvetson. With over 250 members strong, the Alliance is headquartered in New York City and has offices in Washington DC and Denver, CO. The Alliance has Hubs and affiliate groups underway in Texas, Chicago, Colorado, San Francisco/Silicon Valley, Michigan, New York State, Washington DC. Metro, the EU, Canada and Israel.

Click here to learn more.

Pennsylvania Nanotechnology Conference 2004

Pennsylvania Nanotechnology Conference 2004: The Business of Nanotechnology
The Pennsylvania Convention Center, Philadelphia, PA
May 25-26, 2004
___________________________________________________________________________

We are witnessing the beginning of the nanotechnology business. With innovative nano-products now on the consumer market, breakthrough applications in fields like microelectronics, materials, and biopharmaceuticals, and current spending on nanotech by the U. S. government and industry exceeding $3 billion a year, nanotechnology certainly presents significant business opportunities.

In the coming years, those opportunities will multiply with a new surge in nanotech growth. This key, enabling technology will transform virtually every industrial sector, from advanced materials, agriculture and chemicals to electronics, energy, defense and transportation. By 2015, sales of nano-products will attain $1 trillion, according to U.S.-government estimates.

Pennsylvania is hoping to emerge as a nanotech leader, with important research, development and industrial initiatives already under way, supported by an expanding technical, business and financial infrastructure.

Here for more.

Best Pennsylvania Companies to Work For

Here is a good idea from Pennsylvania you make want to copy.

A diverse array of companies makes up the Best Places to Work in Pennsylvania 2003 list. However, all 100 companies share one common element – a dedication to employee growth and satisfaction that reflects the exceptional quality of life found throughout Pennsylvania.

You may be familiar with Fortune Magazine’s annual "100 Best Companies to Work for in America" list. Well, we wanted to find the Best Places to Work in Pennsylvania – so, Pennsylvania officials asked the Great Place to Work® Institute (GPTWI), the same organization that conducts the annual Fortune survey, to conduct a similar study here.

Click here to see the list.

WEDnetPA

Looking for ideas on innovative or successful practices by employers to foster workforce development? Take a look at some of the things WEDnetPA in Pennsylvania is doing.

Successful or best practices when implemented as part of an annual continuous improvement program can produce a considerable return on investments. Using best practices is one of the easiest ways for a company to start the process of becoming a "High Performance Workplace". We encourage you to evaluate some of these proven human resource practices to improve your operations through increasing the skills of your employees and becoming a learning organization.

Formalized Training Plans; How to make sure your training investment improves your bottom line. Create a training plan on -line with our Training Planner software.

The Corporate University: It's not just your average training department!

How do you manage Turnover? In a time of lean organizations and dwindling pools of experienced hires, understanding WHY employees leave is the key to keeping them.

Managing Productivity: Making the most of your workforce. Invest in Productivity!

Managing Teamwork: Beyond team building seminars, how to make teamwork a reality at your company.

Here for more.

Indiana Incents Logistics Growth

The State of Indiana recently enacted special, temporary tax legislation to help develop logistics-related businesses in six counties, including Allen, Whitley and Huntington.

For 18 months, beginning July 1, businesses in those counties will be able to apply for multiyear tax abatements on new logistics and information technology equipment purchases.

Here to read more.

Arizona State University Organizes China Learning Expedition

Here is an example of how an area can build effective global business connections.

Buck Pei, Arizona State University associate dean of Asia Programs, has a favorite saying about business executives who experience China's booming economy firsthand: They come back with the global mind-set of a Marco Polo. "Seeing is believing," he said.

Next week, Pei and other officials from the W.P. Carey School of Business at ASU will introduce a group of Arizona executives to the bustling business center that is Shanghai. The six-day trip is designed to strengthen ties between Chinese businesses, ASU and the Greater Phoenix business community.

Here for more.

Auto CEO Blames Costs

Here is what a CEO of a leading U.S. auto company recently had to say at Detroit's Economic Club:

"Detroit - and the U.S. auto industry as this region has come to know it - is under fire from the rest of the world and will die a slow death unless Detroit's automakers, suppliers and unions come together with the state and federal government to solve the country's manufacturing woes, said the CEO of one of Detroit's largest companies and the head of the country's largest industrial trade group.

Exploding health-care benefit costs, rising corporate taxes and high energy prices place a tremendous burden on U.S. manufacturers and make them uncompetitive with the rest of the world, said Dick Dauch, chairman and CEO of auto supplier American Axle & Manufacturing. Furthermore, other countries are eyeing the U.S. auto market as a place to make money and simultaneously manipulating their currency or closing off their markets to make entry difficult for U.S. firms."

Yes, Mr. Dauch is right that continued efforts to reduce costs of doing business are important, but I would add that U.S. manufacturers, including those in the auto sector, need to do a better job of: 1) innovating; 2) giving consumers the best value possible; and 3) take a long view of competitiveness and not just the short term bottom line.

Go here to read more.

Is Biotech Really Growing Geographically?

That is the $64,000 question for the day. Here is what a recent article has to say on this topic.

Moreover, national competition for biotech businesses and research dollars is fierce, with more than three dozen states in the hunt. While the biotech industry has grown, it has not expanded much beyond the areas where it has always flourished -- Boston, San Francisco, San Diego, Raleigh-Durham, Seattle, New York, Philadelphia, Los Angeles and the Washington, D.C.-Baltimore area.

The chances of creating more centers are slim, said Joseph Cortright, an economist in Portland, Ore., who co-wrote a 2002 Brookings Institution report on the state of the biotech industry.

"I think people in economic development have this naïve assumption that biotech is like Krispy Kreme donuts," Cortright said. "That it starts in one part of the country and soon will be available everywhere, and that's just not the case."

Go here for more.

U.S. Managers Willing to Transfer Abroad

This one may surprise you.

While multitudes of laid-off tech workers are struggling to find a new footing here at home, there is another approach: If you can't beat 'em, join 'em. The Association of Executive Search Consultants (www.aesc.org) sent along a new survey that says 34% of American senior executives would take a job in India. Likewise, 34% would move to Russia, and fully half would go to China. Companies trying to expand in those parts of the world are hungry for management talent, says association chief Peter Felix. "Search firms have been flooded with requests" for executives willing to pack their bags, he says.

Here to read more.

Good Reading

History has a way of putting things in perspective. If you want perspective of how we have created wealth in the world over time, then The Birth of Plenty: How the Prosperity of the Modern World was Created should be on your reading list. Click here to read more.

Teleworking: Is It for Your Area?

Imagine saving $3,000 per employee per year. And lopping $71 million off your real estate bill. Oh, and how about a 4 to 12 percent boost in employee productivity?

Sound good? Those are some figures thrown around by advocates of telecommuting, or, as some prefer to call it, teleworking. While the numbers may be optimistic, they do suggest that working from home isn't just good for commute-weary employees but for employers as well. But properly equipping a remote employee is more complicated than you might think, as is deciding whether the investment truly pays off. More vexing still may be the issue of who should take the lead in pushing for—or pushing back on—work-from-home arrangements.

Not everyone agrees on just what constitutes a teleworker. The International Telework Association & Council defines one as an employee who works at home, at a client's office, in a satellite office or telework center, or on the road at least one day per month. Even restricting the definition to an employee who works from home at least one day a month, there are 23.5 million teleworkers in the United States. Using research firm IDC's more-conservative standard of three or more days per month yields a population of 8.7 million telecommuters.

However these workers are defined, their numbers are increasing, at least by some measures (as with the total population, growth rates vary depending on how teleworker is defined). To be effective from home, they typically rely on a computer, often a laptop that travels back and forth from home to office; an Internet connection, preferably broadband and not dial-up; a telephone; maybe a fax machine; and, increasingly, a growing range of corporate-based software applications that can be accessed from home.

Here to read more.

Foriegn Direct Investment Data

Looking for comparative data on foreign direct investment? You may want to check out UNCTAD's Division on Investment, Technology and Enterprise Development. Click here.

Did you know that the 100 largest transnational corporations (TNCs) account for 4.5 percent of world GDP?

Innovation Must Touch Both Product and Process

That is what AT Kearney experts have to say on the issue. Often business executives believe they can make it by concentrating on product innovations, which are important, but not enough.

Are companies in your area innovating at the level of both product and process?

Here is a summary of AT Kearny has to say:

"From the retro look of Chrysler’s PT Cruiser to the “disappearing” seats in Honda’s Odyssey minivan, product innovations draw the crowds. Splashy new designs and accessories confer competitive advantage and help companies gain marketshare in the short term.

But to sustain that lead, companies must also strive for innovation in their underlying business processes. For example, Toyota has achieved its preeminent position by pushing the operations envelope à la Kanban in its just-in-time production tool and systematically embedding such process innovations throughout the organization. Companies that innovate both product and process consistently emerge at the top in terms of profitability, according to A.T. Kearney research.

Typically, companies map and analyze existing ways of doing business and make incremental improvements. Process innovation goes much further. It establishes radically new procedures and policies to substantially improve effectiveness, quality, flexibility or productivity. Companies with innovative processes build and sustain competitive advantage because they can rapidly and accurately respond to ever-changing market conditions."

More here.

When Is It Time to Outsource?

That is an important question for economic developers to ask as they work to understand the current wave of offshore outsourcing. Here is what AT Kearny has to say on this matter in a nutshell:

"As a product matures, the integrated business model is less practical because there are fewer opportunities to improve on technological innovation. At this point, companies (or individual business units) may choose to outsource their manufacturing capabilities to a contract manufacturer. When they move to a contract manufacturing business model, an external manufacturer assumes responsibility for manufacturing the product according to specifications dictated by the company or the business unit."

Here for more.